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If R(x)R(x) is the total revenue received and C(x)C(x) is the total cost incurred in the production of x units of a commodity, then the profit function P(x)P(x)

Solution

✅ Correct Option: 4

Profit is what remains after costs are met, so P(x)=R(x)−C(x)P(x)=R(x)-C(x).

Differentiating this relation also gives marginal profit as marginal revenue minus marginal cost.

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